Coupled with the weaker debt repayment capacity of borrowers, Moody’s expects the move to cause a systemwide increase in the NPL ratio.
February 10, 2021Collateral is one of the more underutilised credit risk mitigation tools available to banks, and likely to become more important as loan losses mount in the year ahead.
November 12, 2020Requirements to report forbearance granted to borrowers will ensure industry statistics reflect the “true health of the banking system” and incentivise prudence in banks’ credit decisions.
August 11, 2020Coronavirus-related disruptions will weaken the operating environment and weigh on asset quality, despite policy measures to help mitigate the effects on banks.
April 3, 2020Moody's says the regulation may widen credit divergences between large and small banks, as the latter are less likely to receive less government support.
November 28, 2019Pierre Latrobe at Mazars discusses the measures the HKMA has taken so far to strengthen its macroprudential supervisory toolkit and address potential risks to the wider financial system.
October 22, 2019Moody’s says the downgrade of Hong Kong’s outlook to negative is the result of a shift in its equilibrium with China, in addition to the ongoing protests in the city.
September 17, 2019Significant variations in reporting practices in some cases do not meet the disclosure objective of IFRS 9, Moody's says, describing HSBC Hong Kong and Hang Seng Bank as best in class.
August 13, 2019Brokers will be allowed to issue more debt to maintain liquidity in the interbank market. But some say the liquidity crunch is a normal process to restore risk control and force out bad players.
June 26, 2019Moody's says Singapore performs better than other banking systems in a high stress scenario. The new report also looks at banks' digitisation push.
June 2, 2019